PHADA attacks salary cap proposal for nonprofit housing developers

PHADA attacks salary cap proposal for nonprofit housing developers

By Lynda Carson - November 13, 2013

Oakland - A grassroots signature gathering effort to impose a modest salary cap on the executives in nonprofit housing organizations that receive excessive salaries and wage compensation is under fire, and being attacked by the powerful lobbying group known as the Public Housing Authorities Directors Association (PHADA).

An email sent on November 8, 2013 by Kathi Whalen, a policy analyst for PHADA, it begins with; "Dear Ms. Carson, a salary cap for affordable housing developers is a really bad idea - and a petition counterproductive." Ms. Whalen further states, "You are sending an especially damaging message to young people just starting their careers in affordable housing. Their skills and abilities will some day be cut short by an arbitrary salary cap -- and they will leave for better careers that fairly reward their performance."

In another an email sent on November 13, 2013 by Kathi Whalen, a policy analyst with PHADA, she writes; "Your choice to look uninformed. The salaries are not being paid at the expense of residents. And all of this pressure to raise revenue - rent increases etc are coming because Congress will no longer pay to support low income families. The money has to come from somewhere. Got any ideas?"

Under attack by years of funding cuts to federal housing programs, in addition to the massive $1.2 trillion in sequestration budget cuts that are shredding the nation's housing programs, fair minded people including Section 8 voucher holders, public housing tenants, and residents in so-called affordable housing programs have been uniting and signing a MoveOn.org petition to push for a salary cap for nonprofit housing developers.

The petition says; "Due to sequestration budget cuts, we demand that all nonprofit and for profit so-called affordable housing developers freeze the rents on the poor. We also demand that the so-called affordable housing developers scale back all executive salaries above $125,000 annually, and impose a salary cap of $125,000 for all executives in organizations that have local and federal tax payer subsidized housing projects."

The petition is about fairness in the federal subsidized housing programs that are being shredded by the massive sequestration budget cuts, and placing the poor, elderly, and disabled at risk of higher rent increases, the loss of their housing vouchers, and homelessness. Too many executives in so-called nonprofit housing organizations all across the nation make upwards of $200,000 to $300,000 a year, off of tax payer subsidized housing projects.

Click on the link below for the MoveOn.org petition...

http://petitions.moveon.org/sign/salary-cap-for-nonprofit

The Section 8 housing choice voucher program is at risk in Oakland because the Oakland Housing Authority is facing over $11 million in budget cuts since the on-going sequestration budget cuts took effect on March 1, 2013 that threaten thousands of low-income renters with higher rent increases, or the possible loss of their vouchers someday. Low-income families in the Section 8 voucher program pay 30 to 40 percent of their income in rent each month, and the rest of the rent is paid to the landlord by the federal program.

With regards to budget cuts for some other local housing authorities currently, it was also reported that the Santa Clara Housing Authority faced a budget cut of $21 million. The San Francisco Housing Authority faced a budget cut of $9.4 million. The Contra Costa Housing Authority faced a budget cut of $7.2 million. The Alameda County Housing Authority faced a budget cut of $5.8 million, plus the San Mateo County Housing Authority faced a budget cut of $3.6 million.

Last week the Contra Costa Times reported that Section 8 housing choice voucher holders in Contra Costa County are facing a massive rent increase of $121.00 per month due to the sequestration budget cuts. Making matters worse for low-income renters locally and across the nation in so-called affordable housing projects owned by nonprofit developers, the renters are still facing major rent increases, at the same time that the salaries for the executives of many so-called nonprofit housing organizations are skyrocketing to heights never seen before.

As a direct result, low-income renters are being hit by a combination of sequestration budget cuts, massive rent increases, and are being forced to contribute to the excessive salaries of the executives in control of tax payer subsidized affordable housing projects, that have minimum income requirements that discriminate against the poor.

With the powerful lobbying group PHADA attacking the concept of a salary cap for executives in the so-called affordable housing industry, the following below will shed a little light on PHADA, and it's activities.

According to the latest 990 tax filing for PHADA from 10/01/2011 through 09/30/2012, it's gross receipts for that period was $2,133,676.

According to PHADA, the organization works closely with members of Congress in efforts to develop sensible and effective public housing statutes and obtain adequate funding for low-income housing programs.

PHADA only has nine people listed for their staff, and Timothy Kaiser, PHADA's Executive Director, pulled in a whopping $205,004 in 2012. Stuart Van Dyke (Gov Affairs) raked in as much $120,306.

Salaries, other compensation, and employee benefits payed out in 2012 were as much as $1,123,225 that year, plus an additional $813,965 in other salaries and wages, plus other employee benefits of $181,421.

Located in Washington, D.C., during 2012, PHADA spent $216,969 on lobbying efforts, and spent a whopping $388,457 on conferences, conventions, and meetings. PHADA also spent $11,682 for travel expenses, $171,085 on office expenses, and $443,672 for occupancy expenses.

During 2012 PHADA received income from membership dues totaling $1,428,839. Since 2007, PHADA also received $6,686,788 in gifts, grants, contributions and membership fees, plus gross receipts from admissions, merchandise sold or services performed, or facilities furnished totaling $3,747,621, for a combined grand total of $10,434,409.

After subtracting their liabilities from their assets during 2012, the organization had $2,403,762 left in their account.

PHADA is holding it's 2014 Commissioners Conference on January 12--15 in Orlando, Florida, at the HYATT Regency Grand Cypress Hotel... Room Rate: $169.00 single/double.

During 2012, the Obama administration decided to clamp down on excessive pay for executives at public housing authorities, by setting caps that extend and expand the limits imposed by Congress during past years. The executive action comes after it was revealed that the top executive at the Atlanta Housing Authority received a massive wage and compensation package of $644,214 annually, being the highest in the country.

According to reports, the U.S. Department of Housing and Urban Development imposed a maximum salary ceiling of $155,000 for public housing authority officials, according to two senior administration officials. The salary cap applies to the portion of executive salary paid with federal money, and it does not require congressional action, officials said.

The Obama administration also pointed to a whopping $606,320 in total compensation for the top executive at the Housing Authority of the City of Los Angeles, an incredible amount of $417,688 for the top executive at the Philadelphia Housing Authority, and the obscene amount of $357,635 being payed to the top executive at the Chelsea, Mass., Housing Authority, according to reports.
The salary cap imposed by the Obama administration and HUD overlooked the excessive salaries of the so-called affordable housing industry all across the nation, that lobbies for more federal dollars for their tax payer subsidized housing projects, and excessive salaries.

Most so-called affordable housing developers run much smaller operations than the executives of the numerous Public Housing Authorities listed above, and many executives have salaries that are obscene and excessive in nature. The excessive salaries are harmful to poor people in the so-called affordable housing projects that are being forced cover the costs of the excessive salaries during the massive budget cuts affecting the nation's housing programs in recent years, with never ending rent increases.

See the latest in salaries and wage compensation for some of the top executives from some local 501 c3 charity nonprofit housing organizations operating in Oakland, according to some of the latest 990 tax forms filed with the federal government that are available for public viewing.

EAH Inc.; In 2012, more than 11 executives at EAH Inc., earned well over $100,000 per year, including 2 people raking in well over $200,000 a year. Leading the pack, Mary Murtagh, President, was paid $298,850 in 2012. Laura Hall, Chief Operating Officer, was paid $208,286. Cathy Macy, CFO, was paid $186,709. Stephen Lucas, VP Acquisitions, was paid $182,991. Dianna Ingle, VP Re MGMT, was paid $163,324.

Affordable Housing Associates; In 2010, Susan Friedland, Executive Director of Affordable Housing Associates, was paid $133,731, but was payed $152,966 in 2012, a huge wage compensation increase of $19,235 during a period of massive budget cuts to the nation's housing programs during that same period.

Bridge Housing; In 2011, the top executive at Bridge Housing took in well over $300,000 that year, with 6 other top executives pulling in well over $200,000 annually, including an additional 6 other top executives raking in well over $155,000 that year. Leading the pack, Cynthia Parker took in $330,249 in compensation during 2011. Rebecca Hlebasko was paid $278,224. Kimberly A McKay was paid $255,665. Susan Johnson was paid $235,875. D Valentine was paid $235.840. Lydia Tan's compensation was listed at $224,474 for 2011 (Severance pay on 1/3/2011, of $118,244, and distribution of an additional $106,230). Brad Wiblin was paid $200,887. Ann Silverberg was paid $196,499.

Christian Church Homes: In 2011, Don Stump, President/CEO, was compensated $181,874. Cynthia Lappin, VP Operations & COO, was paid $157,295. Winthrop Marshall, VP Finance & CFO, was paid $151,687. Leilani Siegfried, VP Human Services, was paid $138,810. Geoffrey Morgan, VP Development, was paid $130,948. Sheryl Stella, Controller, was paid $123,832.

Eden Housing; In 2011, Linda Mandolini, Executive Director, was paid $188,834. Jan Peters, Chief Operating Officer, was paid $187,538. Terese Mcnamee, CFO, was paid $175,804.

Satellite Housing; In 2011, Ryan Chao, Executive Director, Satellite Housing was paid $175,321. Dori Kojima, was paid $105,179. Miriam Benavides was paid $100,093.

East Bay Asian Local Development Corporation; During 2011, Jeremy Liu, Executive Director, was paid $125,217. Peter Sopka, CFO, was paid $125,101. Mary Hennessy, COO, was paid $110,126. Carlos Castallenos, Director of Real Estate Development, was paid $103,329. Records also show that in 2009, former Executive Director of EBALDC, Lynette Jung Lee, earned as much $140,536 that year, including an additional $5,942 in other compensation. Joshua Simon is the current Executive Director, of EBALDC.

Resources for Community Development; In 2011, Dan Sawislak, Executive Director, of received a total compensation of $127,330.

For those who are interested in a fair system of having a salary cap for the executives in so-called nonprofit affordable housing organizations and freezing the rents of the poor from more rent increases, feel free to click on the following link below for the MoveOn.org petition.

http://petitions.moveon.org/sign/salary-cap-for-nonprofit

Lynda Carson may be reached at tenantsrule [at] yahoo.com